Newsflash: Unexpected Homebuying.

I may be a first-time homebuyer and need some advice on what to do next.This started when my mother passed away a few months ago. I was living rent-free in a property they owned. Previously, my step dad told me that the property was mine, so I didn’t put any thought into it until this week when he said he needed to sell it to pay off debt they both accumulated.The home is tax assessed at 25k but as-is the house needs thousands of dollars in repairs. We have two current projects they started but never finished.1. Bathroom (some walls down to studs)2. Bedroom (trim needs reinstalled, minor laminate flooring will need done)One major problem The addition to the house needs demolished. I’m currently working with a construction company on an estimate.He said he would do 24k on the house, but looking in my area (small town population 500) two houses are on the market with similar bedrooms and area. one is selling for 26k the other 18k. So I don’t know if this house is priced right. I have a feeling it’s overpriced.What would be a good next step? Should I hire an appraisal before going to the bank for money? I’m not worried about the bank approving me, but I would like to apply for FHA mortgage to reduce my downpayment since I’m strained now to have the upfront cost needed. (5k in savings)